Analyzing the Competition Strategy for Notebook PC’s Key Component Industry in Taiwan

• Main Authors: Hsuan-Lung Chung, 鍾選龍
• Other Authors: 林世銘
• Format: Others
• Language: zh-TW
• Published: 2006
• Online Access: http://ndltd.ncl.edu.tw/handle/44226447807080807456

碩士 === 國立臺灣大學 === 會計與管理決策組 === 95 === Even the shipping quantity of notebook PC from Taiwan accounts for 70% of the total shipment around the world, the key components of this industry are still under the control by the companies in U.S.A. and Japan. It is not because of technical capability, but the patent protection. While facing the barrier of patent related issues, most Taiwanese companies would rather make limited profits by offering outsourcing manufacture services than compete with American/Japanese competitors. In this thesis, the competition strategy of a Taiwanese manufacturer (CaseCo) is discussed. The CaseCo planned to enter the notebook PC key component industry; however, this industry was monopolized by American/Japanese firms, and the CaseCo faced the deterrence strategy from the market first movers. The first movers not only threaten the case company by patent infringement and price war, but also adopt negotiation strategy. The only purpose is to expel CaseCo from the market, and keep making the excess profits. The objectives of this thesis are (1) to compare the academic deterrence strategies with the ones employed by CaseCo, (2) to investigate the impacts of deterrence strategies, and (3) to analyze the competition strategy and its effectiveness of CaseCo. From the discussion of this thesis, the other companies which plan to compete with American/ Japanese firms in Taiwan, like CaseCo, could evaluate the potential revenge inflicted from the first movers or main market share holders, and build up the technical capability for self-prevention in the future. This thesis investigates the competition relationship between the case company and other market first movers, and tries to find the optimal solution from game theory. It concludes that the best solution and strategy to reduce competition are not to expel the competitors from the market, but to collaborate with them for the long-term interests.